Many people are happy when they buy insurance, but they are very painful when they pay. So how should the insurance payment time be chosen?
First of all, understand the three periods of general insurance payment:
1, wholesale (dǔn) payment: that is, all premiums are paid in one lump sum. More common is "single accident insurance" (aircraft, cars, etc. ), one-year medical insurance and one-year accident insurance.
2. Short-term payment: usually paid in three or five years. General long-term insurance is possible.
3. Long-term payment: generally 20 or 30 years. General long-term insurance is possible.
In general, Yice Capital Research Institute suggests that you choose a longer payment period through investigation and analysis. By comparing the following three aspects, analyze the payment time that suits you.
0 1 The payment period is long and the insurance lever is high.
For the average person, the longer the payment period, the better, which can make the leverage effect of insurance higher.
For example, for the critical illness insurance with a coverage of 654.38+0 million, if A chooses to pay the premium in 30 years and B chooses to pay the premium in 20 years, it is obvious that A can enjoy the same high coverage at a lower annual cost. In case something goes wrong before paying the premium, you can get hundreds of thousands of premium compensation, especially for small ones.
At the same time, you should also consider the factors of currency depreciation. The current 100 yuan is definitely more valuable than the 100 yuan five years later. This means that the same premium, the later the actual payment, the lower it is, which is more cost-effective for the insured.
In addition, the saved funds can be used to invest in P2P, funds, foreign exchange and other wealth management products, which not only realizes asset allocation, but also enables Qian Shengqian to obtain higher returns.
Financial insurance is suitable for short-term payment.
Although long-term payment has many benefits for insurers, there is one kind of insurance that is not suitable, and that is financial insurance.
Financial insurance can be understood as a financial product in insurance, and its core is to pursue investment income, so it is directly related to the amount of principal. In the same time, the more principal investment, that is, the more insurance money paid, the more natural benefits.
Moreover, financial insurance generally provides consumers with a universal account with compound interest. This means that the shorter the payment time, the sooner the compound interest effect will play, just like snowballing. The sooner the interest rolls, the faster it will roll into a snowball.
However, Yice Capital Research Institute does not recommend buying financial insurance through the investigation of property insurance in the market, because the general annualized income is 3%, which is really a loss compared with other financial management methods. If you have already bought financial insurance, choose short-term payment.
The payment period should be combined with the actual situation of the individual.
The above two payment cycles are aimed at ordinary people who buy insurance, and the choice of payment cycle varies from person to person.
In short, the longer the term, the lower the actual cost of paying the premium later, but only if you pay it on time and can't stop paying it, otherwise the insurance will not be guaranteed and the original principal will be lost. If you have a stable income for a long time, you might as well use long-term payment. If your income is unstable but you have the ability to pay the insured amount in one lump sum, then choose to pay the insured amount in one lump sum.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.